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Boost for first-time-buyers in Wales as new low deposit mortgages announced

Principality launches direct-only 95 per cent loan-to-value mortgage

January 24, 2013

First-time-buyers in Wales can now access finance even if they only have a 5 per cent deposit. Principality Building Society has launched a new mortgage with a loan to value ratio of 95% for people in Wales and border postcodes SY, HR, CH1, CH2, CH3 and CH4. It has a rate of 4.99 per cent, which is fixed for five years, and it comes with no product fee but does have a £99 application fee. The maximum loan size for the product is £250,000.

Principality head of mortgages Christopher Johnson says: “The shortage of mortgage products realistically available to those with a low deposit has been a major stumbling block for first time buyers and we hope that this product provides an opportunity for them to own a high quality, affordable home.” He went on to praise the Bank of England’s Funding for Lending scheme which has lent around £4 billion to banks since last August on the premise that the money is passed on to consumers and businesses.

If you want to learn more about what types of mortgage are available read our guide Mortgages made simple and sign up to our newsletter to get monthly updates on all the latest property news and deals.